U.S. Inflation Slows to 3.4% in July as Gas Prices Ease
Core inflation also slowed to 2.5% as gasoline prices eased, easing pressure on Federal Reserve officials ahead of their September meeting.
- On Aug 12, the Labor Department reported consumer prices rose 3.4% in July from a year ago, down slightly from 3.5% in June.
- Lettuce prices plunged more than 16% last month after a recall of iceberg lettuce from Mexico, while falling gasoline and grocery prices offset rising rents and airfares.
- Stripping out volatile food and energy prices, "core inflation" was 2.5% for the 12 months ending in July, down from 2.6% in June.
- Market odds of a September rate hike fell below 40% after Wednesday's report, though gasoline prices remain more than a dollar higher than before the Iran-Strait of Hormuz conflict, according to AAA.
- Easing inflation provides welcome news for the Federal Reserve, which has committed to controlling prices, though policymakers will review another inflation report before gathering next month.
252 Articles
252 Articles
Sticky Inflation, Job Loss Prolong Fed’s Interest-Rate Limbo
No surprises. More time. That’s what July’s inflation report delivered to the Federal Reserve on Wednesday. The Bureau of Labor Statistics’ latest Consumer Price Index update showed the broad gauge of goods and services costs rose 3.4% year-over-year. That was exactly in line with Wall Street’s expectations, and might mean another month of waiting and seeing if the Fed is done with its wait-and-see approach to prices. Bond Theme “The big surpris…
Analysts expected precisely 3.4% inflation at 12 months, according to the consensus gathered by MarketWatch
US inflation rises 0.1% in July, easing pressure on Fed
US consumer inflation rose mildly, increasing 0.1% in July, in line with economists’ expectations. The results, which put the annual rate at 3.4%, ease pressures on the Federal Reserve as it weighs an interest rate hike in September. The inflation data, along with a weak July jobs report, bolster the argument for a hold on rates. But the debate is far from over: Another batch of inflation data is due before next month’s meeting, and economists r…
Inflation edges up in July amid falling gas and hotel costs | Honolulu Star-Advertiser
WASHINGTON >> U.S. consumer prices barely increased in July as the cost of gasoline declined for a second straight month, while underlying inflation was benign, further reducing the odds of an interest rate hike from the Federal Reserve next month.
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